MULTINATIONAL FINANCIAL MANAGEMENT Groupe 5 Case study ASPEN TECHNOLOGY INC.: Currency Hedging Review 1) What are Aspen Technology’s main exchange rate exposures? How does Aspen Tech’s business strategy give rise to these exposures as well as to the firm’s financing need? The main exchange rates exposures are: British pounds‚ Deutsch Mark‚ Japanese Yen and Belgian Francs. Aspen faces foreign currency risks due to sales and expenses in those foreign currencies. Expenses include R&D costs (20% of overall R&D
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PLEKHANOV RUSSIAN UNIVERSITY OF ECONOMICS INTERNATIONAL BUSINESS SCHOOL Case Study HEDGING CURRENCY RISKS at AIFS Risk Management Master’s Degree Students: Bostandzhyan Kristina Inarkaeva Lamara Kirpichnikova Mariya Starovoytov Stanislav Sysoev Alexander Supervisor: Yulia Finogeeva Moscow 2015 INTRODUCTION AND PROBLEM STATEMENT AIFS is an American based company which was found in the U.S. in 1964. There are two main divisions in the company: the College division‚ which offers
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Introduction Overview of the hedging techniques In the financial market‚ almost all of companies need to face the currency risk. In order to manage the currency risk‚ companies will use different hedging techniques‚ such as financial and operational hedging techniques. For example‚ money market‚ futures contracts‚ options and forwards contracts are commonly used by firms‚ as well as operational hedging techniques. All of 4 types of financial hedging techniques are short-term hedge. Money market
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Session 4 CASE Questions Innocents Abroad: Currencies and International Stock Returns The goal of this case is to help Sandra Meyer develop a presentation to address Henry Bosse’s concerns about international investments. The general idea is to demonstrate to Henry the benefits of international diversification‚ if any. To achieve this goal‚ you need to have a view on 1) the impact of foreign exchange (FX) rates on the return and risk of international investments‚ and 2) the impact of having
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Technology Solution to a Business Problem Subject of Course Project Advanced technology is proved to be beneficial for organizations and business more than ever before‚ it helped in bringing business close. It assisted in each and every aspect of business from making team of best employees‚ to booking order‚ delivery of products and their support. We need to use advanced technology in order to help business needs of an organization or use specific technology to solve a business related issue
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Aspen Technology‚Inc.: Currency Hedging Review History and Overview • Specialized in the development of simulation software for customer in process manufacturing industries • Advanced System for Process Engineering (ASPEN) project conducted at the Massachusetts Intitutes of Technology (MIT) in Cambridge Massachusetts‚ from 1976 to 1981 • Founded in 1981 by Dr. Larry Evans‚ a professor of chemical engineering at MIT • Larry Evans"leadership in the development and application of integrated
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emotional arousal.’ (p. 154) n ’Nonverbal theorist Dale Leathers (1990) reports on research demonstrating that‚ compared to verbal cues‚ non-verbal cues are four times as effective in their impact on interpersonal impressions.’ (p. 137) 2. Identify the hedging expressions in the follow ing sentences. 1. There is no difficulty in explaining how a structure such as an eye or a feather contributes to survival and reproduction; the difficulty is in thinking of a series of steps by which it could have arisen
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nl/locate/econbase Exchange rate exposure‚ hedging‚ and the use of foreign currency derivatives George Allayannis a‚* ‚ Eli Ofek b a b Darden Graduate School of Business Administration‚ University of Virginia‚ PO Box 6550‚ Charlottesville‚ VA 22906‚ USA Stern School of Business‚ New York University‚ 44 West 4th St. #908‚ New York‚ NY 10012‚ USA Abstract We examine whether firms use foreign currency derivatives for hedging or for speculative purposes. Using a sample of
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Obermeyer‚ Ltd. Aspen‚ Colorado Wally Obermeyer deftly balanced his office keys and a large printout of forecasting data as he wheeled his mountain bike through the front entrance of Sport Obermeyer’s headquarters in Aspen‚ Colorado. It was a crisp November morning in 1992; Wally paused for just a moment to savor the fresh air and beauty of the surrounding mountains before closing the door behind him. Wally had arrived at work early to start one of the most critical tasks Sport Obermeyer‚ a fashion
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lot of volatility in other markets around the world owing to increased inflation and the oil shock. Export Houses struggled to cope with the uncertainty in profits‚ cash flows and future costs. It was then that financial derivative – foreign currency‚ interest rate‚ and commodity derivatives emerged as means of managing risks facing corporations. In India‚ exchange rates were deregulated and were allowed to be determined by markets in 1993. The economic liberalization of the early nineties facilitated
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